U.S. consumers increased their spending in December at a slower pace, while their income grew by the largest amount in eight years, the Commerce Department said. Income surged because companies rushed to pay dividends before income taxes increased on high-earners.

Americans are earning and spending more, but a lot of the extra money is going down their gas tanks. Gas prices have drained more than half the extra cash Americans are getting this year from a cut in Social Security taxes.

For years, policymakers have reassured the public that Social Security will be solvent for decades. But federal spending and income data from the Treasury reveals that Social Security is already deep in the red, with outlays exceeding payroll tax revenues by $76 billion in 2010 alone.

Public confidence in the social security systems is on the wane, according to a USA Today/ Gallup poll.
Six out of ten non-retirees think Social Security won%u2019t be able to pay them benefits when they stop working. Three-fourths of those aged 18 to 34 don%u2019t expect any kind of social security check when they retire. A majority of retirees also say they expect their current benefits to be cut.